Management report to Council Agenda item 6.4 Council Proposed discontinuance and sale of a private lane (PL5125) at the rear of Nos. 68-72 Collins Street, Melbourne

25 March 2014

Presenter: Angela Meinke, Manager Planning and Building

Purpose and background 1. To advise Council of a proposed road discontinuance and sale pursuant to s.189(4), s.206(1) and Clause

3 of Schedule 10 of the Local Government Act 1989 (the Act) of PL5125 (the Road) as shown on the attached Locality Plan (refer Attachment 2).

2. The discontinuance proposed is consistent with the Incorporated Document ‘80 Collins Street, Melbourne May 2013’ approved by the Minister for Planning. The Incorporated Document allows the demolition, use and development of the land for the purpose of a mixed use development comprising office, retail premises and residential hotel. The development site combines properties at 74, 76-80, 82 and 84 Collins Street, Melbourne and includes the air space above and road to the rear of 68-72 Collins Street, Melbourne. The Road will be kept open at ground level for access into the development and an easement of way is to be created over the land in favour of 68-72 Collins Street, Melbourne, which will enable deliveries to this property. The City of Melbourne did not oppose the proposal.

3. Public consultation of the proposed discontinuance and sale was undertaken as detailed in Attachment 1. A submission (refer Attachment 3) was lodged by Ms Sally Fethers, a CBD resident and small business owner.

Key issues

4. The Road (refer Attachment 4 for a photo of the existing lane and also the approved development concept) is privately owned and is not under the City of Melbourne’s care and management. The Road is contained in a remnant general law title from 1854; the current owner has not been able to be identified. The land is currently not rated.

5. The developer needs to obtain ownership of the Road to allow the development approved in the Incorporated Document of the Melbourne Planning Scheme ‘80 Collins Street, Melbourne May 2013’ to proceed. This Incorporated Document would need to be amended if the discontinuance and sale is not approved.

6. Once the Road is discontinued following gazettal, ownership vests with Council. As Council does not reasonably require the Road for road purposes it is considered appropriate to sell the Road to Queensland Investment Corporation Ltd (QIC). The sale of the Road will be at market value as determined by Manager Property Services, based upon an independent valuation and only after approval to proceed with the discontinuance and sale has been granted. The sale will enable:

6.1. development to occur as approved

6.2. an easement of way can be created in favour of the property at 68-72 Collins Street, Melbourne

6.3. the ongoing maintenance of the road by the new owner

6.4. Council to levy rates on the new owner for the land.

7. The Road lies within a Heritage Precinct in the Melbourne Planning Scheme, but is not classified in Clause 22.20 (CBD Lanes). It is not identified as having any significant qualities (refer Attachment 5).

8. The submitter opposes the proposal on the grounds that the selling off one of the most interesting and historical parts of the Melbourne CBD is in opposition to Council’s own vision for the city. A copy of the full submission is at Attachment 3.

9. The Submissions (Section 223) Committee was convened on 3 February 2014 to consider the submission received and to hear from the submitter. The Submissions Committee resolved to recommend to Council that it proceed with the discontinuance and sale of the Road for the reasons detailed in the recommendation below. In making the recommendation, the Submissions Committee noted Ms Fethers concern had been addressed.

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Attachments: 1. Supporting Attachment 2. Locality Plan 3. Submission 4. Photo of existing lane and proposed development concept 5. Extracts from Clause 22.20 (CBD lanes) of the Melbourne Planning Scheme 6. Public Notice 2

Recommendation from the Submissions (223) Committee

10. That Council:

10.1. Pursuant to Clause 3 of Schedule 10 of the Act discontinue the Private Lane (PL5125) at the rear of Nos 68-72 Collins Street, Melbourne as shown hatched on the plan in the relevant public notice and sell the discontinued Road to Queensland Investment Corporation Ltd, for the following reasons:

10.1.1. The sale will enable the redevelopment of 80 Collins Street, Melbourne in accordance with the Incorporated Document ‘80 Collins Street, Melbourne May 2013’ approved by the Minister for Planning under Planning Scheme Amendment C219.

10.1.2. The lane will be kept open at ground level for access into the development and an easement of way is to be created over the land in favour of 68-72 Collins Street, Melbourne.

10.1.3. The proposed discontinuance and sale meets the Council’s policy objectives.

10.2. Notify the submitter in writing of the decision and reason for the decision.

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Supporting Attachment

Legal

1. The Council’s power to discontinue and sell public and private roads in its municipality is contained in Section 206(1) and Clause 3 of Schedule 10 of the Local Government Act 1989.

2. Sections 207A and 223 of the Act provide for submissions to be made by any person affected by the discontinuance and sale of a road and to be heard in respect of those submissions.

Finance

3. Council’s costs associated with managing the application will be met by Queensland Investment Corporation Ltd. This is regardless of whether the application is successful or not, or if it is withdrawn. These costs include property valuation, general advertising, gazetting of the road discontinuance in the Government Gazette and associated legal costs.

4. Should the application be approved, the affected land will vest in Council free of all encumbrances save potentially those of the service authorities, following publication of the discontinuance of the road in the Government Gazette.

5. Following publication of the notice in the Government Gazette Council will consequently then be able to sell the land to QIC at market value as determined by Property Services.

6. Any sale of land is likely to result in a once off gain to Council measured by the final market sale price less the written down value.

Conflict of interest

7. No member of Council staff, or other person engaged under a contract, involved in advising on or preparing this report has declared a direct or indirect interest in relation to the matter of the report.

Stakeholder consultation

8. The proposal was given public notice at QIC’s cost. Notice of the proposal for discontinuance and sale was undertaken simultaneously (refer Attachment 6) by being:

8.1. published in The Age, Melbourne and in the Herald Sun, both on 12 December 2013 8.2. placed online on The City of Melbourne’s website 8.3. posted by mail to neighbouring property occupants and owners including Rolex Australia Pty Ltd 8.4. emailed to all of the Service Authorities

9. One written submission (refer Attachment 3) was received. The matters raised in the submission can be summarised as:

9.1. selling off one of the most interesting and historical parts of the Melbourne CBD is in opposition to Council’s own visions for our great city

9.2. the area is a safe and high quality well used public space and place 9.3. the municipality’s cultural and natural heritage is not being protected 9.4. the City could carry out additional planting to update the area.

Relation to Council policy

10. The proposed discontinuance has been assessed under the Road Discontinuance and Sale Policy.

Environmental sustainability

11. Environmental sustainability issues are not considered relevant to this proposal which does not itself involve any works.

Attachment 1 Agenda item 6.4

Council 25 March 2014

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Attachment 2 Agenda item 6.4

Council 25 March 2014

LOCALITY PLAN

PL5125

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19 January 2014

The Manager Governance Services Melbourne City Council, Town Hall, 90 Swanston Street Melbourne Vic 3000

Dear Manager I am opposed to the discontinuance and sale of PL5125 rear 68-72 Collins Street Melbourne This selling off of one of the most interesting and historical parts of the Melbourne CBD is in opposition to the Melbourne Council's own vision for our great city. "Goal 1: City for People Safe and high-quality, well used public spaces and places." Certainly this is exactly what is currently found at rear 68-72 Collins Street. I walk past this area nearly every morning and enjoy what is unique to the CBD - a small example of history where one can conjure up stories that relate to this space. It is untouched, including an old door at the rear of Le Louvre, long disused on the first floor of the old building. The other piece of history that I think of as I wander around this lovely space is how incredible it was that the City of Melbourne was able to sell off the two original buildings which now sit as a vacant space, just, I believe, so that Nauru House could have a Collins Street address. I am sure many current councilors would agree that we have come a long way from that rational, or have we?

"Goal 2: Creative City Municipality's cultural and natural heritage is protected for the appreciation of future generations" Well, to date this has been the case in this particular space, and let's hope it continues when we advise the Queensland Investment Corporation that this particular "natural heritage is protected for the appreciation of future generations".

"Goal 5: An Eco-City Increased Biodiversity and tree canopy cover in the municipality." I will admit that the plane trees currently growing in this area do not give off a huge canopy, but I am certain the municipality could engage City Wide to update the area with some additional trees and some small shrubs to make the area look really fantastic. However, I think, that for our current purposes we should just think about preserving rather than enhancing. After all, as I pointed out, the best thing going for this unique, little space is, well just that.

So, as resident and small business owner in the CBD I urge you to retain PL5125 rear 68-72 Collins Street elbourne for my, and future generations, enjoyment.

S a ethers

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Attachment 4 Agenda item 6.4

Council 25 March 2014

Photo of existing lane Approved development

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Attachment 5 Agenda item 6.4

Council 25 March 2014

EXTRACTS FROM CLAUSE 22.20 (CBD LANES) OF THE MELBOURNE PLANNING SCHEME

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